I've observed over the course of my life that, not only is this issue and the status of Israel important to those living in the region, but it has also held a great deal of importance in the eyes of the U.S. government and many among the general population. I don't think there's any region or conflict in the world which has had more attention from Americans than this one - and it's been going on for longer than I've been alive.
I would consider this to be significant, since there are/were so many other conflicts and instances of unrest around the world which Americans are barely aware of. They're often treated as minor blips by the media. But this region is viewed differently, as it's considered very important from the standpoint of our religious culture.
I can sort of see both sides to this, although when looking at it, much of it seems to be rooted in a perception that both sides believe that the other side "started it first." It's a war that started generations ago, and ever since, it's been a continuous back-and-forth, eye for an eye. "You did this to us, so now we're going to do it to you." Sure, they've had periodic peace talks, giving people hope that finally there will be peace in the Middle East. But it never lasts. There's always something brewing.
On a practical note, I can observe the sharp differences in living standards, seeing who's living in squalor and slums and who's living in more comfortable situations. If it's a conflict rooted in economic disparities, I can understand it on that basis. But even that doesn't seem to explain it. Is it some ongoing revanchist struggle that won't ever end? Or is it purely a religious struggle?
I've known some Americans who view Israel more in biblical and prophetic terms, believing that America must support Israel no matter what, because it's God's will. So, that also appears to be a big driver behind the religious right's support.
It's the religious aspects which make it all the more complicated, at least in terms of public perceptions.